Union Textiles Minister Giriraj Singh announced on Thursday, June 11, 2026 that the government has approved 22 additional textile companies under the Production Linked Incentive (PLI) scheme, taking the total number of companies selected in Round III to 96.

Context

Posting on X via the NaMo App, Singh shared the update in Hindi: 'सरकार ने PLI स्कीम के तहत 22 और टेक्सटाइल कंपनियों को मंजूरी, तीसरे दौर में चयनित कंपनियों की संख्या बढ़कर 96 हुई' ('The government has approved 22 more textile companies under the PLI scheme, taking the number of companies selected in the third round to 96'). The announcement signals continued momentum in the government's effort to scale domestic textile manufacturing capacity.

Policy Backdrop

The Union Cabinet approved the PLI scheme for textiles in September 2021 with a total outlay of Rs 10,683 crore, focusing on man-made fibre (MMF) apparel, MMF fabrics, and technical textiles. The scheme was formally notified in December 2021 as part of the broader Atmanirbhar Bharat package, which rolled out 14 PLI schemes across key manufacturing sectors. The textiles PLI was designed to attract fresh investment, raise domestic value addition, and reduce India's dependence on imports in a labour-intensive industry.

The Ministry of Textiles has positioned successive rounds of company approvals as a deliberate, sequenced strategy to build production capacity — particularly in segments where China has historically dominated global supply chains. The broader PLI framework, initiated in 2020, covers sectors ranging from electronics to automobiles alongside textiles.

Stakeholders and Impact

Textile manufacturers and apparel exporters are the primary beneficiaries of the scheme, with incentives tied to incremental investment and turnover milestones. The approval of 22 new companies in this tranche expands the pool of firms eligible to claim production-linked payouts, potentially unlocking fresh capital expenditure in MMF and technical textile segments. Industry bodies have consistently flagged the PLI as a critical lever to help India capture a larger share of global textile trade at a time when buyers are actively diversifying sourcing away from China.

For workers and ancillary units in textile clusters across states such as Gujarat, Tamil Nadu, Maharashtra, and Uttar Pradesh, a larger approved company base under PLI can translate into expanded production lines and incremental employment over the medium term.

What's Next

Attention will now shift to the disbursement phase — whether the newly approved companies meet the investment and turnover thresholds required to actually draw down incentives. Analysts and industry stakeholders will also watch whether the Union Budget brings any further expansion of the scheme's outlay or a revision of eligibility criteria in light of Round III's scale-up. Minister Singh's continued public communication around PLI milestones suggests the Ministry of Textiles intends to keep the scheme's progress visible ahead of the next policy cycle.